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Events That Effect Currency and the Transfer of Funds Overseas?

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What Are the Events That Effect Currency and the Transfer of Funds Overseas?

At the last count, a cumulative total of $5.1 trillion was traded through the forex market on a daily basis.

This also underpins aspects of other industries too, including travel, the procurement of overseas real estate and prosperous currency exchanges. The latter is particularly interesting, as there may be many instances in which we need to exchange funds while looking to achieve the best possible value for our capital.

In this post, we will explore the factors that effect currency valuations and your international transactions.

What Factors Impact on Currency Values and the Forex Market?

In truth, there are numerous factors that can impact on the value of specific currencies, many of which can be tracked by monitoring the global forex market. Online brokerage firms such as LCGoffer direct and real-time access to the forex market and live currency prices, while it also includes analytical tools that can track trends, appraise the impact of individual events and help users to pre-empt future price movements. **This is the best way to track price movements, whether you are buying property overseas or simply look to exchange funds before going on holiday.

**Over time, you will also develop an instinct for the type of events that directly impact on currency values, with economic data releases one of the most telling. These come from all over the world during the course of the economic calendar, with positive data boosting national currencies and negative feedback triggering a process of devaluation. Growth in the job market or improved manufacturing confidence helps to strengthen currencies, for example, whereas a lack of wage growth and low consumer spending has the reverse effect.

This offers us an insight into how macroeconomics impact on currency values, with even major examples such as the U.S. Dollar (USD) capable of seeing huge fluctuations over the course of a year. Macroeconomics relay how the aggregate economy is performing, as it appraises factors such as interest rates, inflation and consumer spending. As these fluctuate in relation to economic uncertainty and geopolitical conflicts, so too currency values shift on a frequent and sustained basis.

Why Timing is Everything When Exchanging Currency

The fall-out from Brexit highlights just how geopolitical uncertainty can undermine macroeconomic performance and cause the value of a currency to plummet. With the pound having experienced huge devaluation during the last 14 months and continuing to trade within a narrow range against the USD and the Euro (EUR), it is now more expensive to buy international currencies or purchase goods from overseas.

This trend is set to continue, and it is easy to see why timing is everything when it comes to exchanging currency. By using the resources we have referenced here and following economic and geopolitical trends, you can chart the price movement of currencies and time your exchange so that it delivers the best possible rewards.